Many students prefer federal loans over private student loans simply because these government-backed loans have lower interest rates and are easier to repay. Private student loans are also readily available, but only a few consider applying because of the widespread notion that private student loans are more expensive than federal loans.
The private student loans will come up as the best comprehensive financial solution to meet the education expenses such as fees, living expenses, supplies, computers, and all other associated expenses.
Private student loans are beneficial because they provide a quick solution to a tuition problem. Unlike Federal student loans, which can take several months to process and disburse, private student loans offer quick processing, and the money is normally distributed to the student within five business days.
Some private loans come bundled with stuff that you can use for school, such as computer equipment, school supplies, books, etc. Since private student loans are offered mostly by banks, companies and other non-profit organizations, they are able to tie up with companies who want to promote their products in this manner.
Private loans are usually unsecured loans, which charge high interest rates. However it has certain advantages in comparison with the Federal loans, such as no specific eligibility requirement, conduct certificate or other formalities. The easiness in application submission is the foremost advantage of the private student loan. The federal loans had the limitation that the student loan has to be applied before the last date. But the private student loans have no particular dead line and can be applied on any day. The private student loan can be applied through online. The private student loans can enjoy the privileges of the repayment options of all student loans. The repayment of the loan amount has to be started only after the completion of the course and even the grace period.